Retail Analytics Market - Forecast(2024 - 2030)

Retail Analytics Market Overview:

Human beings have reached an interesting pinnacle in their history with the advent of the ‘Big Data era.’ With more than half the world having access to the Internet, the amount of data produced on a daily basis is unfathomable. According to International Business Machines (IBM), 2.5 quintillion bytes of data is created every day.^[1] With data of this magnitude and frequency, retail data analytics have become an imperative part of every enterprise. Frequent and enhanced consumer data analysis leads to expansion of businesses as they are to capitalize on personal customer requirements. The market for retail analytics hence, is witnessing unprecedented growth largely due to the creation and storage of big data.

In the upcoming few years, availability of more internet connections, a better data speed, and expanding urbanization will act as growth drivers of the retail analytics market. In the year 2018, the global retail analytics market size stood at $4.56 billion. This will experience outstanding growth in the forecast period of 2019-2025 with a compound annual growth rate (CAGR) of 20.97%.

Retail Analytics Market Outlook:

Retail analytics is a process that utilizes data analytics software to provide insights on business inventory, supply chain management, financial management, factors affecting sales, and consumer demands. These insights are essential in the process of product marketing and other major business decisions. Using these findings, businesses are able to estimate areas where they might need improvement or have massive scope for capitalization. Retail analytics exist in the form of research brochures which suggest facts and insights based decisions, case studies which help in improving interactivity with customers, and white papers. North American companies with their high return of investments and steadily falling technology costs has made this region the leader of the retail analytics market geographically. In 2018, North America held a regional share of 35.32%.

Retail Analytics Market Growth Drivers:

Ø  Online Presence Of Enterprises

With a growing need for making a mark in the online space, enterprises are investing in websites that encourage consumers to purchase their products. Regular customer visitation on a website requires a massive amount of data storage in order to analyze their shopping trends and make the website experience more interactive. This helps enterprises in acquiring subscribers with ease and expanding their business. Amazon Prime is an apt example of this strategy as the company has basked on its online presence as well as user reviews to increase subscribers. In a letter to shareholders in 2018, Amazon CEO Jeff Bezos revealed that Prime had over 100 million subscribers by the year 2018 with the service shipping more than 5 billion items worldwide.^[2]

Ø  Optimization Of Inventory

Medium and large enterprises have a tendency to sell more than a hundred products which require strict management of an inventory. Often a product which is experiencing a high demand can go out of stock. Not being informed about this can lead to high losses incurred, which is why retail analytics market has eased up the process and provided data analytics tools that help businesses in getting notified about product information, and providing better customer data management.

Retail Analytics Market Challenges:

One of the challenges faced by the retail analytics market is data security issues. Since many software are utilized in storing billing as well as profile details of the customers, data security becomes a persistent problem. Regular security checks, as well as the installation of a powerful malware, are possible ways to overcome the issue of data security.

Retail Analytics Market Key Players Perspective:

Key players operating in the retail analytics market are 1010data, Angoss Software, BRIDGEi2i, Capillary Technologies, Diaspark, FLIR Systems, Fujitsu, GainInsights Solutions, Happiest Minds, Information Builders, IntelliVision, IBM, LoyaltyOne, Manthan Software Services, Microsoft, MicroStrategy, Oracle, QBurst, Qlik Technologies, RetailNext, SAP, SAS Institute, Trax, Visual BI Solutions, and Zebra Technologies.

IntelliVision is a San Jose, California based subsidiary of Nortek Security and Control that focuses on providing video analytics through the usage of Artificial Intelligence and Deep Learning. Using AI video analytics, they are able to provide services such as facial recognition, audio analytics, and license plate recognition.

Retail Analytics Market Trends:

Key market players are experiencing unstoppable innovation in the market with the expansion of small and medium enterprises in the world. Some of the disruptive trends in the market are:-

Ø  Incorporation of Deep Learning

Using retail analytics, an increasing amount of large enterprises are incorporating deep learning and Internet of Things to improve shopping experience. A prime example is Amazon’s ‘Just Walk Out’ technology that is being practiced in its Amazon Go stores. Customers can scan their phones at the entrance, grab the items they want, and walk out of the store with amount getting deducted from their phones automatically. This has been made possible by retail analytics and will become a common trend in the upcoming years.

Ø  Integration of Omnichannel Data

Omnichannel experience is the incorporation of all kinds of shopping experiences in a single platform. Since e-commerce is being conducted throughout the world, brand awareness will be emphasized on through omnichannel data intergration. Retailers are also expected to use attribution models to estimate how effective their marketing channels are.

Retail Analytics Market Research Scope

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Retail Analytics Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of cheese in the Retail Analytics Market, and their specific applications in different areas.

Retail Analytics Market Report: Industry Coverage

The retail analytics market can be segmented on the basis of analytics, and function. Based on analytics, the market can be fragmented into predictive, Omni channel, location, big data and IOT. And by function, the market can be bifurcated into marketing sales, risk management, supply chain, employee engagement, customer analytics and finance and executive management.

The Retail Analytics Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include: 

•           North America: The U.S., Canada, Mexico

•           South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica

•           Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark

•           APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong

•           Middle East and Africa: Israel, South Africa, Saudi Arabia

[1] https://www.ibm.com/blogs/insights-on-business/consumer-products/2-5-quintillion-bytes-of-data-created-every-day-how-does-cpg-retail-manage-it/